Corporate Alternative Minimum Tax Applicable After 2022

APA Corporation, an independent energy company, is requesting specific guidance from the Treasury and IRS regarding the treatment of intangible drilling and development costs (IDCs) under the Corporate Alternative Minimum Tax (CAMT). They argue for a "tracing approach" to prevent the permanent loss of pre-2026 IDC deductions and request that guidance on embedded depreciation deductions in Net Operating Loss (NOL) carryovers be extended to include IDCs.

The American Bankers Association supports the overall Corporate Alternative Minimum Tax (CAMT) regulatory regime but requests specific modifications to simplify compliance. They argue for the inclusion of an alternative "top-down election" using book income for equity method investments and the expansion of the "taxable income election" to all tax equity partnerships to reduce administrative burdens for both taxpayers and the IRS.

Nationwide Mutual Insurance Company supports the proposed regulations but argues that they should include a specific transition rule for pre-2023 nonlife net operating loss (NOL) carryforwards. They contend that without this adjustment to adjusted financial statement income (AFSI), the Corporate Alternative Minimum Tax (CAMT) would unfairly penalize taxpayers for taxes effectively prepaid before the CAMT was in effect.

The AES Corporation, a global energy company, submitted comments regarding proposed regulations on the Corporate Alternative Minimum Tax (CAMT). They advocate for specific modifications to the "safe harbor" method and partnership rules to ensure consistency in how tax credits and distributive shares are treated, aiming to reduce administrative burdens for domestic energy developers.

The American Council on Renewable Energy (ACORE), American Clean Power Association (ACP), and Solar Energy Industries Association (SEIA) are submitting joint comments regarding the Corporate Alternative Minimum Tax (CAMT). They argue that the proposed "bottom-up" calculation method for partnership income creates significant distortions and compliance burdens for clean energy tax equity investments, and they request the implementation of a "Top-Down Election" to ensure more accurate and efficient results.

Jackson National Life Insurance Company opposes the proposed bifurcation of accounting principle change amounts for pre-2020 taxable years under Prop. Reg. §1.56A-17. The company argues that this bifurcation is impractical to calculate, inconsistent with statutory language, and would create the very duplications or omissions the regulation intends to prevent.

Miller & Chevalier Chartered, a tax firm, is commenting on behalf of a client regarding the Corporate Alternative Minimum Tax (CAMT). They oppose the proposed regulations because they create disparate treatment for qualified film and television production costs, arguing that the IRS should provide a "Regulatory Authority Adjustment" to ensure consistent treatment regardless of whether costs are recovered under Section 167/168 or Section 181.

The American Benefits Council, a public policy organization representing over 220 corporations, supports the proposed regulations regarding the corporate alternative minimum tax (CAMT). Specifically, they advocate for treating post-retirement health and welfare plans as covered defined benefit plans if they are accounted for on a defined benefit basis to avoid taxing companies on inaccessible plan assets.

The Global Business Alliance (GBA), representing nearly 200 international companies, opposes several aspects of the proposed Corporate Alternative Minimum Tax (CAMT) regulations. They argue that the proposed "top-down" approach for determining adjusted financial statement income (AFSI) is impractical and distortive, and they advocate for a "bottom-up" approach using domestic reporting packages. Additionally, they request the removal of certain reporting requirements, the exclusion of regular tax restrictions on foreign tax credits, and modifications to rules regarding partnership contributions and net operating losses.

Novo Nordisk Inc. opposes several provisions of the proposed Corporate Alternative Minimum Tax (CAMT) regulations, arguing they create excessive administrative burdens and unfavorable tax consequences. Specifically, the company advocates for a "fresh start" transition approach, a "bottom-up" method for determining financial statement income for domestic subsidiaries, and the ability to use tax attributes from acquisitions to offset CAMT liability.